The International Chamber of Commerce (“ICC”) has announced the publication of Incoterms 2020. This is the first update to Incoterms since they were last revised in 2010. The new rules become effective from 1 January 2020.
Incoterms detail the obligations of the parties as well as the allocation of risk and cost in a trade contracted on three-letter trade terms (such as CIF and FOB). Incoterms are distinct from the meaning of the same three-letter trade terms at common law, and Incoterms will only apply if they are incorporated into the contract (usually by reference).
The revisions to the rules have been produced by the ICC Drafting Group, which was made up of eight members from Australia, China, EU member states, Turkey, andthe USA. Incoterms 2020 contain six significant changes from Incoterms 2010:
A further change which runs throughout the document is purely cosmetic. The ICC has attempted to make the rules clearer than ever, with introductory and explanatory notes as well as changes in the order and layout of the rules. The motivation behind this change is apparently to encourage users to employ the most appropriate trade term for their particular trade, in particular to discourage the use of maritime terms for non-maritime trade.
Overall, the changes to the terms are more conservative than some predicted, and there are a few notable absences in the list of changes. It had been anticipated by some that the DPP rule would be split into two terms, and that the FAS term would be removed entirely. Others had expected the introduction of a new “Costand Insurance” term (“CNI”). In the event, these changes have not materialised.
总体而言，此次针对国际贸易术语进行的修订，其结果比外界预测的更为保守，并且也依然存在一些值得注意的缺失。分析人士曾预测DPP术语将被拆分为两个不同的术语，而FAS术语则将被完全移除，也有部分评论曾预计在此次修订中“Cost and Insurance”（CNI）将会作为新术语被引入。然而根据公布的正式文本显示，上述修订最终均未落实。
We would be very pleased to discuss these changes and how they may affect your business in more detail. To arrange such a discussion or for any further information please contact the undersigned, or your usual Ince contact.
劳玮裕 (Wai Yue Loh)